Goulburn-Murray Water’s draft budget for 2024-28 has been conditionally approved by the Essential Services Commission.
Gravity water irrigators will face only small increases in water charges over the next few years under a draft Goulburn-Murray Water budget conditionally approved by the Essential Services Commission.
Hold tight - we’re checking permissions before loading more content
But the Essential Services Commission has sent the accountants at G-MW back to the drawing board to recalculate proposed charges for unmetered customers.
“Our draft decision does not accept Goulburn-Murray Water’s proposed tariffs for service point fees for unmetered customers as we consider they are not cost reflective and do not meet the requirements of our guidance,” the ESC said.
“We require Goulburn-Murray Water to recalculate its proposed service point fees for unmetered customers after considering our draft decision, noting that we suggest actual cost data to be collected over the medium to longer term, which will provide greater accuracy.”
G-MW business and finance general manager Michael Gomez said the ESC’s draft determination states the authority’s Price Submission for 2024-28 is of a high quality and focuses on minimising costs for customers.
“We are grateful to all the customers who helped shape the submission with their feedback throughout the engagement program,” Mr Gomez said.
“G-MW’s draft Price Submission outlined the intention to improve how it communicates with diversion customers about the nature of their charges. The ESC’s draft determination has supported this step.
“We appreciate the ESC’s feedback on giving further consideration to the calculation of service point fees for unmetered customers, and we will seek to address this in line with the advice provided by the ESC.”
A typical gravity irrigation customer bill will decrease by one to three per cent or stay the same, depending on the district (except for Torrumbarry).
For pumped irrigation customers, their bill will increase by between zero and up to 13 per cent.
Regulated diverters’ bills will decrease by five to 12 per cent, depending on the size of the customer.
A typical unregulated diverter’s bill will increase by four to eight per cent, while a small-sized unregulated diverter’s bill will decrease by six per cent
While the ESC commented on the comprehensiveness of G-MW’s submission and its engagement with customers, the ESC had received 13 submissions from unregulated diverters who raised concerns regarding G-MW’s engagement with them.
“Most submissions considered that the business’s pricing proposals and engagement efforts did not address the unique needs and concerns on fees and service point costs for domestic and stock water customers,” the ESC noted.
“In its price submission, Goulburn-Murray Water has acknowledged this lack of satisfaction and committed to improve how it communicates with diversion customers, both on the nature of charges and on value for money.”
Unmetered diverters on unregulated waterways were concerned that cost assumptions underpinning price proposals were not reasonable or transparent, service point fees should not apply to them given no service was being provided and it was not unreasonable for inspection and surveillance costs to be related to entitlements.
Water deliveries actual and projected over the next four years. Source: G-MW.
For water supply districts there will be some bigger increases proposed: East Loddon 5.3 per cent, East Loddon (North) 8.9 per cent and West Loddon, three per cent. Tungamah’s is expected to decrease by 9.3 per cent.
The districts deliver water all year round through pumped and pipelined supply systems.
In the draft budget, the ESC approved capital expenditure of $114 million, with a revenue requirement of $480 million over the four years.
ESC pricing and regulation executive director Marcus Crudden said G-MW’s price submission demonstrated its commitment to delivering value to its customers.
“Goulburn-Murray Water provided us with a high-quality price submission, underpinned by a comprehensive engagement program and a clear focus on efficiencies and minimising costs,” Mr Crudden said.
"Under its pricing plan customers will benefit from investments to maintain and renew assets underpinning service reliability, improved data security and management by the business, and the continued simplification of some key tariffs.
“Goulburn-Murray Water will also reduce its environmental footprint and continue to work to achieve net-zero emissions by 2035.”
The ESC invited feedback on the draft decision before a final decision is made in June.
The ESC plans to hold a public forum on April 23. Details will be published on the Engage Victoria website.
Written comments or submissions in response to the draft decision are due by May 7.
